accounting 1 part 2

income statement

net income

balance sheet

assets, liabilities, stockholders equity

cash inflow

getting loans, selling cookies

cash outflow

buying ingredients for cookies

accounting cycle

two steps measurement and communication

external transactions

• selling products to a customer, purchasing supplies, paying salaries to employers 

account

• a record of all transactions related to a particular item over a period of time 

asset account

cash, supplies, utilities payable

liabilities account

• salaries payable, taxes payable  

stockholders equity

common stock, retained earnings,

general ledger

• provides a single collection, each account with its individual transactions and resulting account balance  

deferred revenue

• a liability and is different than revenue  

trail balance

• is a list of all accounts and their balances at a particular date, showing that total debits equal total credits 

payable

• the amount of money that a company owes to its creditors for goods or services that have been provided but not yet paid for.

receivables

• the amount of money that a company is owed by its customers for goods or services that have been provided but not yet paid for